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blankseplocked Rook invention v's Market prices...?
 
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Opium Alland
Posted - 2011.07.30 03:40:00 - [1]
 

I'm new to Invention, I'll admit that up front. (I'm also an obvious alt) but...

I can make a nice profit manufacturing from my Falcon inventions, but although the construction materials are (almost) identical for the Rook, I stand no chance in hell of getting even close to the market price.

Have a dozen people researched a bunch of Rook BPO's to +50, when I'm stuck at -4 or -3...? I can't understand the disparity between the prices of those two ships. Am I using the wrong decryptors?

Akita T
Caldari Navy Volunteer Task Force
Posted - 2011.07.30 04:16:00 - [2]
 

Edited by: Akita T on 30/07/2011 04:22:48

The disparity is not THAT large, and it only started getting larger the past winter.

I doubt anybody bothered with ME:50 on Rook BPOs, but you never know.
Most of them probably don't even have ME:10. That goes for pretty much every remotely interesting T2 ship BPO.
Then again, Rook is not that interesting, so it's possible some have high ME levels.
Meh. Not like the difference is significant past ME:3 or so anyway.

However, here's the thing with items that have T2 BPOs : if the item sucks (i.e. traded volume can easily be produced from BPOs alone), market price of that particular T2 item usually falls below best invention breakeven, and sometimes, if the item REALLY sucks, even close to barely breaking even for moderate ME BPO manufacture.

When you compare the Rook with the Falcon, few people want to fly the Rook compared to the Falcon.
Just look at Jita/Forge market volumes : Rook moves about 25-30 per day, Falcon moves 60-70 per day. Not quite three times as much, but close.
The Rook production can almost certainly be met by BPO production, while some Falcons almost certainly need to be invented.
Hence, Rook invention should usually yield a loss, while Falcon invention should be somewhat profitable.

Nothing special, just the way T2 stuff works.

clixor
Celluloid Gurus
Posted - 2011.07.30 11:02:00 - [3]
 

I agree with Akita. But if the demand is met by BPO holder(s), they bascially dominate the market and can set price accordingly right? So the main problem wouldn't be the BPO holders but the inventors who still try to undercut and drive prices down to minimal level in the process.


Akita T
Caldari Navy Volunteer Task Force
Posted - 2011.07.30 14:17:00 - [4]
 

Edited by: Akita T on 30/07/2011 14:19:21
Originally by: clixor
if the demand is met by BPO holder(s), they bascially dominate the market and can set price accordingly right? So the main problem wouldn't be the BPO holders but the inventors who still try to undercut and drive prices down to minimal level in the process.

Invention is only profitable when the total needed/desired volume of items is higher than whatever can be provided by BPOs, and then price level is indeed set by whatever the inventors as a whole deem as a borderline acceptable average profit.
But when the demand can be met by BPOs entirely, inventors are completely out of the picture, and price level is set by whatever the BPO holders as a whole deem as a borderline acceptable average profit (which is usually a price level well below invention breakeven). So yeah, you could say they "dominate" the market, but only because the market sucks. They do not have a monopoly on the market (they can't jack up prices), they're merely the only ones who can still extract SOME tiny profit from it at rock-bottom prices.

Sure, some inventors might still stupidly go ahead and invent at a loss in that second scenario, but overall, their presence is mostly irrelevant - BPO owners mainly compete with other BPO owners in that case.
Why ? Because EVEN IF inventors would be stupid enough to consider the whole invented BPC at zero value (the whole "datacores I get myself are free therefore have zero value" mentality), the material costs to build a ship from an invented BPC are usually still noticeably higher than those manufactured even from a ME:0 BPO, so they'd have to be doubly stupid to ever actually try to compete with a BPO holder. And if they are THAT stupid, they won't be in business for too long.


 

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